The current business operating environment is characterized by dynamic and frequent change. However, companies are required to do more than just improve performance and promote growth. They are now regarded as organizations with a role to play in society. In addition to being judged in terms of corporate governance and compliance, companies are now expected to provide safe and reliable products that are worthy of consumers’ trust. Furthermore, they must promote environment-friendly procurement and production.

Given this situation, we changed our corporate name in 1990 to Mercian, derived from the French word merci, meaning “thank you.” At the same time, we made repaying our debt to society and nature the key management philosophy - a concept that has guided our business activities since.

Mercian utilizes nature’s gifts to enhance lifestyles and provide more relaxing and enriching experiences. Alcohol-related products help promote ways of enjoying food and drink that are becoming an integral part of our customers’ lives. In addition to the above, our mission is to ensure greater culinary enjoyment and improve health by capitalizing on our extensive fermenting and brewing expertise.

We make every effort to ensure our corporate activities take into account social and cultural issues. Most notably, this requires us to maintain environment-friendly management and develop businesses that contribute to better mental and physical health.

As a result of a capital and business alliance with Kirin Brewery Co., Limited, in 2007 we made a fresh start as a member of the Kirin Group. Having positioned 2007 as the year of our “second founding,” we have identified two major objectives for the new Mercian.

First, we will narrow our focus to businesses with high growth potential - specifically, wine and processing liquors - with the aim of becoming the number one name in both. To date, we have emphasized diversification, leading to the decentralization of investment, rather than being sufficiently selective and concentrated. Going forward, we will devote our best efforts to securing the top shares of Japan‘s wine and processing liquors markets as a member of the Kirin Group, which aims to be Japan‘s strongest comprehensive alcoholic beverages group. We will also continue to advance our pharmaceuticals and chemicals, and livestock and fish feedstuffs businesses, both of which we recognize as important to our continued growth.

Second, we will become a company that is truly customer-focused. In other words, we will strive to embody the sentiments implied in the “Mercian” name - that is, gratitude to customers - in the way we operate. To this end, we intend to drastically overhaul our management style and structure. This effort will include reviewing our management system, as well as our head office and branch organization, with the aim of bringing us closer to our customers, thereby enabling us to better understand their perspectives and act accordingly.

In every area of our operations we will continue to develop businesses that make a significant contribution to society. In our efforts to do so, we look forward to the ongoing support of our shareholders and other stakeholders.